AMERICA's biggest railway, the Union Pacific, posted a 25 per cent year-on-year increase in second quarter net profit to US$1.5 billion, drawn on revenues of $5.7 billion, up eight per cent.
'Overall, I am pleased with the effort put forth by the entire Union Pacific team; however, I recognise the results could have been better,' said Union Pacific chairman, president and CEO Lance Fritz.
'Network performance improved significantly coming out of the first quarter, but a tunnel outage and train-crew shortages created a headwind in June. I am confident we have the right plans in place to drive improvement in our operations and a better service experience for our customers,' he said.
Second quarter carloads increased four per cent compared to 2017. Volume increases in industrial and premium more than offset declines in agricultural products and energy.
Quarterly freight revenue improved eight per cent year on year as volume growth, increased fuel surcharge revenue, and core pricing gains were partially offset by negative mix of traffic.
The $2.30 per gallon average quarterly diesel fuel price in the second quarter 2018 was 36 per cent higher than the second quarter 2017, said the company.
Quarterly train speed, as reported to the Association of American Railroads, was 24.7 mph, three per cent slower than the second quarter 2017.
The company repurchased 33.2 million shares in the second quarter 2018, including 19.9 million shares received as part of an accelerated share repurchase programme.
Quarterly freight revenues were up five per cent for agricultural produce while energy was up five per cent, industrial products were up eight per cent and premium freight increased 14 per cent.
Said Mr Fritz: 'Looking to the remainder of the year, we expect the strong business environment to continue as we regain our productivity momentum and improve the value proposition for all of our stakeholders.'
'Overall, I am pleased with the effort put forth by the entire Union Pacific team; however, I recognise the results could have been better,' said Union Pacific chairman, president and CEO Lance Fritz.
'Network performance improved significantly coming out of the first quarter, but a tunnel outage and train-crew shortages created a headwind in June. I am confident we have the right plans in place to drive improvement in our operations and a better service experience for our customers,' he said.
Second quarter carloads increased four per cent compared to 2017. Volume increases in industrial and premium more than offset declines in agricultural products and energy.
Quarterly freight revenue improved eight per cent year on year as volume growth, increased fuel surcharge revenue, and core pricing gains were partially offset by negative mix of traffic.
The $2.30 per gallon average quarterly diesel fuel price in the second quarter 2018 was 36 per cent higher than the second quarter 2017, said the company.
Quarterly train speed, as reported to the Association of American Railroads, was 24.7 mph, three per cent slower than the second quarter 2017.
The company repurchased 33.2 million shares in the second quarter 2018, including 19.9 million shares received as part of an accelerated share repurchase programme.
Quarterly freight revenues were up five per cent for agricultural produce while energy was up five per cent, industrial products were up eight per cent and premium freight increased 14 per cent.
Said Mr Fritz: 'Looking to the remainder of the year, we expect the strong business environment to continue as we regain our productivity momentum and improve the value proposition for all of our stakeholders.'